Sleepagotchi is pitching a broader Web3 health economy by turning its original sleep-to-earn mobile game into an AI-powered decentralized health app, according to BlockBeats on July 16.
The project began as a mobile game that rewarded users with digital collectibles for maintaining stable sleep habits. The team later expanded it into a full health application that uses AI to analyze data from smartphones and wearable devices and produce personalized health insights.
Sleep positioned as the starting point
CEO Kenny Wood said the team found that sleep sits at the root of nearly all health and emotional issues. If a user’s sleep is disrupted, he said, that can affect both mood and overall health.
Sleepagotchi now wants to combine on-device AI with utility-focused crypto infrastructure to deliver personalized health recommendations without sending sensitive biometric data to corporate cloud servers or placing that data on-chain.
Local multi-agent system
The app uses a decentralized multi-agent system. A sleep coach, health coach, diet planning agent and shopping agent each handle different tasks, with state data passed locally on the phone in real time.
SLEEP token to support premium functions
On the crypto side, Sleepagotchi plans to use its native stakable token, SLEEP, to support a future marketplace and premium health tracking features. Users will be able to access basic health insights and automated guidance for free, but extra AI queries after the daily base quota is exhausted will require SLEEP.
The project also plans to generate revenue through premium health tracking subscriptions, marketplace listing fees, partner staking deposits, and affiliate commerce income generated by its shopping agent.
Funding and user figures
Sleepagotchi has raised $6.5 million from investors including 6th Man Ventures, Collab+Currency, Sfermion, 1kx, Alliance and GSR.
Project documents show the app has surpassed 2 million users and generated more than $100,000 in revenue during a three-week testing period.

